Whirlpool Corporation (WHR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,275,000 | 1,570,000 | 1,958,000 | 3,044,000 | 2,924,000 |
| Short-term investments | US$ in thousands | — | — | 42,000 | — | — |
| Receivables | US$ in thousands | 1,317,000 | 1,529,000 | 1,555,000 | 3,100,000 | 3,109,000 |
| Total current liabilities | US$ in thousands | 7,323,000 | 6,948,000 | 5,931,000 | 8,510,000 | 8,330,000 |
| Quick ratio | 0.35 | 0.45 | 0.60 | 0.72 | 0.72 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,275,000K
+ $—K
+ $1,317,000K)
÷ $7,323,000K
= 0.35
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at Whirlpool Corporation's quick ratio over the years, we observe a declining trend.
In December 31, 2020 and 2021, the quick ratio remained stable at 0.72, indicating that for every $1 of current liabilities, Whirlpool had $0.72 in quick assets available to meet those obligations quickly.
However, as of December 31, 2022, the quick ratio decreased to 0.60, suggesting a slight deterioration in liquidity compared to the previous years. This decline may raise concerns about Whirlpool's ability to cover its short-term liabilities with its liquid assets efficiently.
By December 31, 2023, the quick ratio further decreased to 0.45, indicating a potential liquidity strain as the ratio fell below 1. This could imply that Whirlpool might face challenges in meeting its short-term obligations using its quick assets alone.
Lastly, by December 31, 2024, the quick ratio dropped to 0.35, signaling a significant liquidity concern and a further deterioration in the company's ability to quickly cover its short-term liabilities. This downward trend in the quick ratio over the years suggests a weakening liquidity position for Whirlpool Corporation that should be carefully monitored.
Peer comparison
Dec 31, 2024